Bill Gross, co-founder of Pacific Investment Management, stated on Monday, July 16, that the USA is just near recession period. Commerce Department presented readings, showing that retail sales declined by 0.5% in June. Moreover, employment increase did not reach its estimated level. Citing Labor Department report, 80 000 people were newly employed in June 2012, though the projected increase was 100 000. Government securities
The Office for National Statistics announced today in London that UK inflation fell in June. In May 2012 consumer prices increased by 2.8%, whereas in June inflation reached two and a half year low of 2.4%. Clothes and Footwear prices declined by 4.2% in June, the biggest loss for this month in UK's modern history. Core inflation, the one that excludes food, tobacco, alcohol and
Last week Mariano Rajoy, Spain's Prime Minister, introduced new austerity measures to deal with country's budget deficit. Analysts predict that in consequence of this Spanish borrowing costs might decline on Tuesday, July 17. On Monday, July 16, one-year bill decreased from 5.074% to 3.5%, though 18-month bill's interest rate fell from 5.107% to 4%. Moreover ,experts fear that tightening fiscal policy could bring Spain into
On Tuesday, July 17, the Bank of Japan reduced 0.1% interest rate for ten-year government bonds that have less than a year until maturity. This rather technical action is intended to stimulate easier purchasing at market operations. Japan decided not to stimulate the economy as its peers do, but rather rely on robust national demand.
European stocks rose following expectations about possible Ben S. Bernanke, Fed Chairman, hints about further encouragement at his semi-annual statement to Congress. CSR Plc plundged 36%; L`Oreal SA increased 1.4%; Alcatel-Lucent SA rose 12%. The Stoxx Europe 600 Index benefited less than 0.1%. The benchmark measure has accessed its seventh gains' week. Asian shares and U.S. index futures also climbed.
The situation in Eurozone worsens and unemployment rises, exceeding 11%. The European Union continuously forces Greece to introduce more austerity measures. The country already cut public spending significantly, trying to deal with budget deficit. However, the economy continues to contract and the country could soon become unsustainable. The output for 2012 is likely to fall by 7-9%, while in the following year contraction might amount
June foreign direct investment in China declined 6.9% compared to May as companies do not feel the need to expand on the back of economic recession. According to the Commerce Ministry representative Shen Danyang, the European Union crisis is the biggest downward pressure. Higher production costs and stricter property policy in China also facilitated the decline.
On Monday afternoon, July 16, Ben S. Bernanke, Fed's Chairman, announced that new monetary easing might be introduced to support the US economy. The instant response was the US Dollar depreciation against its major counterparts. The Greenback declined by 0,1% to USD 1.2283 against the Euro on Tuesday morning, July 17, in London. Moreover it lost 1.1% against the Yen and was trading at JPY 78.87
Canada's ten-year government bond's yield reached record low of 1.598% after Ben S. Bernanke, chairman of the Federal Reserve, presented a report card. Declined demand for Canadian securities also influenced the prices. Only USD 25.7 billion government bonds were purchased in May. On Monday, July 17, afternoon in Toronto the Canadian Dollar lost 0,1% against the US Dollar. It is now trading at USD 0.9852
The German Constitutional Court postponed its decision on resolving European debt crisis until September 2012. The European Stability Mechanism (ESM) of EUR 700 billion was supposed to come into force on the 1st of July 2012, however, member countries still need to ratify this measure. Germany claimed it contradicts with its constitution and currently no decisions can be made until the German top court resolves the
Real estate sellers in London cut prices in July due to increase in supply and typical summer fall in demand. Prices declined by 3.6% or, on average, to GBP 460,304 in comparison to June 2012. In England and Wales fall was a bit smaller, 1,7%. Moreover, Ernst & Young specialists imply house prices might drop by 2% more this year. This means that in
On Monday morning, July 16, the Euro reached three and a half year low against the British Pound. Worries around the ECB and Mario Draghi's (President of ECB) statements make situation around the European currency even more complex. The Euro now is trading at GBP 0.7855 in London, which is a record low since November 2008. Though German government bonds increased in prices. 10-year bonds gained
The main inflation index in India declined from 7.55% in May to 7.25% in June, while food inflation still hits the records reaching 10.81% in comparison with 10.74% the last month. Fuel inflation went down to 10.27% from May's 11.53%. India has the biggest inflation rate among other BRICs countries.
Monday survey demonstrated that U.S. companies are not planning to employ more workers and to rise firms' shares due to the Eurozone debt crisis which reduces sales of the companies. The National Association for Business Economics stated that in the next half-year only 23% of the all interviewed companies are going to hire new employees, whereas its Spring research showed
The slowest growth of China's economy might decelerate PC market expansion. Research conducted by Robert W. Baird & Co, financial advisory firm, showed that the PC industry could stay flat in 2012 i.e face no growth. Though industry researcher, Gartner Inc., expects a slight expansion of 2.7%. Gartner's report shows that globally shipments of PC declined by 0.1% to 87.5 million items in the second quarter
The German two year interest rates remain negative for a week already, having dropped 0.01% to -0.055%, while the five year yields reached a new record low value of 0.283%. The borrowing costs have rapidly increased as investors rather bought German bonds to avoid dealing with states facing the debt crisis.
ZTE, Chinese mobile telecommunications manufacturer, dropped 16% following its expectations of half-year profits to decline at around 80%. It appeared after reports about possible FBI probe in relation to the ZTE sale of forbidden surveillance systems to Iran. ZTE shares dipped on Monday to 10.32 Hong Kong Dollars.
As cited in an official government report, in Singapore the sale of homes has decreased by 17% and reached 5,572 units, which is the most significant drop for the last two and a half years. The prices have also fallen, which is considered a progress, since Singapore has been introducing new measures and trying to reduce the prices since 2009.
ITEM Club from Ernst & Young, British leading forecasters, considered the UK may exit the recession period by the end of the year. The growth will be achieved by falling inflation and an increase in consumer spending. Peter Spencer, chief economic adviser at ITEM, expect disposable income to climb by 1.5% during last quarter of 2012. Though, during the first quarter of 2013 household income might
The British Pound substantially appreciated against the Euro in 2012. This led to a decrease in profits of British manufacturers. The UK lost its competitiveness and become unattractive for the buyers from Germany and France. The current trading rate stays at GBP 0.7860 per EUR, though last week the Pound gained 0.9% against the Euro. Moreover, OECD (Organization for Economic Cooperation and Development) accounted the
China's stocks weakened, as there have been issues regarding the earnings in the overall market, as announced by Cen Liqiu, strategist at Jianghai Securities Co. The Shanghai Composite Index and the CSI 300 Index lost 1.3% and 1.5% respectively. The ZTE Corp, China's second largest telecommunication equipment producer, lost 10% after the net profit has decreased by 80% in comparison with
The Euro reached a value of 0.6% than its all time low in 2010 of $1,20. The currency has been trading lower against its main peers, after Sunday's interview of Angela Merkel. She announced that none of the austerity measures of the five states in need of economic help will be softened.
Oil prices fell again after a slight recovery last week. Futures declined by 0.6% in New York on Monday morning, July 16. August-delivery oil dropped by USD 0.51 to USD 86.58 a barrel. Oil refining slid by 3.4% from May in the US. This led to a record low topping level of 8.79 million barrels a day. Gasoline prices declined by 6.77% to USD
Germany's shares surged on Friday amid hopes for easing in China after Chinese GDP growth tumbled to the lowest level in the last three years. German blue chip index soared 1.07% to trade at 6,474.30. Telecommunications sector was the top-performer, skyrocketing 3.88%. Deutsche Telecom rose 3.3% after Credit Suisse Group upgraded rating of the firm's shares from underperform to neutral.